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October 31st 2020

Coronavirus: Job Retention Scheme extended (updated 5 November 2020)

The Coronavirus Job Retention Scheme (commonly known as the "furlough scheme") is to be extended until at least the end of March 2021, the Chancellor confirmed on 5 November. Only a week ago the government said it would extend it until the end of November.

For the time being, employees will be able to receive 80% of their normal salary for hours not worked, up to a maximum of £2,500; the government has said it will review the details in January. In recent months the support available has been scaled back to 70%, then 60%, so this marks a return to the more generous terms available in the month of August 2020.

The £1,000 Job Retention Bonus, which was meant to support employers who kept previously furloughed staff on until January 2021, has now been canned.

The Job Support Scheme, which had been due to start on 1 November, has now been postponed and is not expected to start until the Job Retention Scheme ends.

Business premises forced to close in England are to receive additional grants of up to £3,000 per month under the Local Restrictions Support Grant.

Mortgage holidays granted at the time of the original lockdowns, which had been due to end, will also be extended. Borrowers impacted by Covid-19 who have not yet had a mortgage payment holiday will be able to apply for a six month holiday; those who have already started a mortgage payment holiday will be able to extend it up to six months.

If you would like to discuss any of the points in this article, contact us today.

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